Coinex hacked, ~$70M stolen

[Rikafip]

Another day, another hack and it time seems like its Coinex turn. Still waiting for the official confirmation from Coinex though, for which will probably take some time.

Edit: iunfortunately it has been confirmed, hack indeed happened https://twitter.com/coinexcom/status/1701651414991397176


https://twitter.com/CyversAlerts/status/1701601111273263550?s=20

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[Oshosondy]

The last one was Staked.com. Although Stake is not an exchange but a gambling site, but it is still centralized and holding customers fund on hot wallet which makes them vulnerable to the hack. Centralized exchanges that have been hacked before are because of the hot wallet that they are using.

Not good to hold coins on exchanges. If $18 million worth of coins  is stolen from the exchange, it is not going to be easy.

Edit: I do not know how true this is, that more coins are stolen. That $27.8 million in ether, tron and polygon has been stolen.

[BitMaxz]

That's bad news I'm using Coinex to trade and transfer some coins from Viabtc to Coinex.

I tried to contact them just now and it's confirmed that they having some issues all withdraw and deposit is currently suspended.

I asked them about the news and this is what they said.

We have not received an official report confirming this issue
Please be patient until the issue is fully investigated and an official announcement is published in this regard
In any case, the first priority of CoinEx is the security of users' assets

[yhiaali3]

The news has not been confirmed yet. I have been working on Coinex for years, but I do not trade on a daily basis. When I heard the news, I logged into my account and there did not seem to be anything strange, not even an announcement about hacking.

I also went to the official Twitter account of Coinex. There is no news about hacking either, the exchange website is working normally so far and nothing strange.

We have to wait for an official confirmation or denial from Coinex.

[Oshosondy]

I tried to contact them just now and it's confirmed that they having some issues all withdraw and deposit is currently suspended.

The news has not been confirmed yet. I have been working on Coinex for years, but I do not trade on a daily basis. When I heard the news, I logged into my account and there did not seem to be anything strange, not even an announcement about hacking.

I also went to the official Twitter account of Coinex. There is no news about hacking either, the exchange website is working normally so far and nothing strange.

We have to wait for an official confirmation or denial from Coinex.

Did you see what BitMaxz posted? He said that withdrawal is not more working. The website of a trading platform can be working good, the trading and all other services they are rendering can be working good, but deposit and withdrawal can be suspended while other things on an exchange can be working good. Were you able to withdraw some of your coins on the exchange?

[Rikafip]

Edit: I do not know how true this is, that more coins are stolen. That $27.8 million in ether, tron and polygon has been stolen.

Yeah I woulnd't be surprised if number is bigger than initially reported $18 million, like it was on Stake case as well.  I can see those Lazarus Group guys from North Korea being accused of this hack as well.  

I tried to contact them just now and it's confirmed that they having some issues all withdraw and deposit is currently suspended.

Hah, that's almost as good as official confirmation that they have been hacked as they woulnd't suspend deposits and withdrawals if it was business as usual.

[yhiaali3]

but deposit and withdrawal can be suspended while other things on an exchange can be working good. Were you able to withdraw some of your coins on the exchange?

In fact, I did not try withdrawals because fortunately I do not leave my assets on the exchange for a long time. I withdraw them permanently and deposit only when needed.
I tried withdrawing and depositing is actually suspended:

[OmegaStarScream]

The exchange just issued an official statement about the matter[1]. According to them this is just a small "amount" of what their reserves have, and affected users will be compensated. Am I the only one who finds this a bit hard to believe? I mean looking at their trading volume and their "reported reserves"?[2]

[1] https://twitter.com/coinexcom/status/1701645839901548874
[2] https://coinmarketcap.com/exchanges/coinex/

[Rikafip]

Am I the only one who finds this a bit hard to believe? I mean looking at their trading volume and their "reported reserves"?[2]

It's a PR bullshit of course in order to calm their users but I doubt that anyone is buying it, at least not those that bothered to check their numbers. I mean, their 24h trading volume is ~$30 million, "reserve" is ~$32 million while hackerd amount is in range of $18 to $27 million. Small amount my ass.

By the way, that tweet with their announcement is deleted for some reason, here is the new one https://twitter.com/coinexcom/status/1701651414991397176

[Hyphen(-)]

The exchange just issued an official statement about the matter[1]. According to them this is just a small "amount" of what their reserves have, and affected users will be compensated. Am I the only one who finds this a bit hard to believe? I mean looking at their trading volume and their "reported reserves"?[2]

[1] https://twitter.com/coinexcom/status/1701645839901548874
[2] https://coinmarketcap.com/exchanges/coinex/

There is no more trust in centralized exchanges, irrespective of their reputation in the world; even Binance can’t be trusted anymore with all these careless or fake hack news stories just to go with people’s funds.

The first tweet reference was deleted, which means that they might not compensate anyone as they promised.

With their trading volume it means they have so many people that fall victim of these hack, that is why it is always advisable to keep our coin in our personal wallets. ”Not your keys, Not your coins “

[Rikafip]

even Binance can’t be trusted anymore with all these careless or fake hack news stories just to go with people’s funds.

When Binance (or any other centralized exchange for that matter) could have been trusted? Crypto exchanges kept failing from the early days (e.g. Mt.Gox) so only a fool would trust centralized platforms.

The first tweet reference was deleted, which means that they might not compensate anyone as they promised.

Tweet is back as it can be seen in my previous post, including that part about compensation.

[Hyphen(-)]

When Binance (or any other centralized exchange for that matter) could have been trusted? Crypto exchanges kept failing from the early days (e.g. Mt.Gox) so only a fool would trust centralized platforms.

Some people still leave their coins on exchanges like Binance, KuCoin, or even exchanges that do not require KYC because they believe those exchanges have a reputation and will be around forever, not realizing that those exchanges also encourage hackers to hack, just like others they believe do not have a reputation.

With all of the headlines regarding CEX hacks, why are some users still keeping their coins in their possession? That is the question I am always asking. I understand that CEX has the most advanced trading features, however they cannot be trusted with our funds.

Tweet is back as it can be seen in my previous post, including that part about compensation.

I saw the tweet now, and I am impressed with the way they address the issue, and they assured people that their funds are safe and not tempered with. I hope they keep to their words because centralized exchanges now are not to be trusted.

[stadus]

From source posted by OP.

Preliminary assessments indicate unauthorized transactions involving $ETH, $TRON, and $MATIC. The precise amount of the loss is still being determined, and the affected fund is just a very small portion of CoinEx’s total asset.

I hope this is true, though they have assured that the business will continue to run as the amount stolen is just a small portion. Personally, I'm a bit worried because $18 million+ stolen, in my opinion, is significant, especially considering that this exchange has only a daily trading volume of just over $28 million according to CMC.

https://coinmarketcap.com/exchanges/coinex/

[noorman0]

It's a PR bullshit of course in order to calm their users but I doubt that anyone is buying it, at least not those that bothered to check their numbers. I mean, their 24h trading volume is ~$30 million, "reserve" is ~$32 million while hackerd amount is in range of $18 to $27 million. Small amount my ass.

Let's see if they will reactivate the withdrawals any time soon to make their claims true and not just start giving more doubts to their users. It also allows anyone to make sure the amount of large reserves they have. Another drama is about to start.

[Darker45]

From the initial $18 million, the estimated amount stolen is now north of $30 million. That's according to a blockchain security firm. Surely, that's not anymore a "very small portion." That's already bigger than their 24-hour volume. Further investigation might still change this number higher.

Even in their statement you can feel a lot of pressure. That's obvious, especially when they say that "We assure all users: your assets are secure and untouched." followed with "Affected parties will receive 100% compensation for any loss due to this breach." LOL! 

Their token has also suffered a double-digit decrease in value. Things don't look good for them.

[Husires]

It is larger than $ETH, $TRON, and $MATIC. There is this transaction https://explorer.chainweb.com/mainnet/tx/GI4z8v-qMPb8a594CMdARfJ-83SzDTXUNYEpIv3mVqQ

2,214,700.00 $KDA ($1,127,371 USD) From CoinEx to unknown wallet

all the assets that were hacked are linked to smart contracts, and no loss of Bitcoin (BTC) was reported. I read some reports that talk about 27 million, and if this is true, I doubt their ability to compensate users 100% without resorting to spiraling loans that may lead to bankruptcy.

[bbc.reporter]

The last one was Staked.com. Although Stake is not an exchange but a gambling site, but it is still centralized and holding customers fund on hot wallet which makes them vulnerable to the hack. Centralized exchanges that have been hacked before are because of the hot wallet that they are using.

Not good to hold coins on exchanges. If $18 million worth of coins  is stolen from the exchange, it is not going to be easy.

Edit: I do not know how true this is, that more coins are stolen. That $27.8 million in ether, tron and polygon has been stolen.

There is a difference in size stolen compared to size of company, however. Stake lost $41 million according to some reports but their monthly revenue is very much larger than this which implies that they will make this stolen amount back within 2 years.

On Coinex, it is a small exchange with a 24 hour trading volume of only $25 million. The impact of this hack is bigger, I reckon. Also, this is the bear market. Revenues will be much lower.

[Rikafip]

all the assets that were hacked are linked to smart contracts, and no loss of Bitcoin (BTC) was reported.

Hm are you sure? In one of their tweets Coinex mentioned this BTC address ( 1BHNb9UJy4cWFB5wywZkTVgoNB4JbFmswH) as part of the hack and there's currenly 231 BTC there worth almost 6 million dollars.
https://twitter.com/coinexcom/status/1701662057496731975

I read some reports that talk about 27 million, and if this is true, I doubt their ability to compensate users 100% without resorting to spiraling loans that may lead to bankruptcy.

27 million is the old number, latest one is 54 million and that's probably not all. Hard times for Coinex, I have no idea how will they sort this out and survive considering their volume, size of their "reserve" and the amount of money stolen.

[OmegaStarScream]

It's a PR bullshit of course in order to calm their users but I doubt that anyone is buying it, at least not those that bothered to check their numbers. I mean, their 24h trading volume is ~$30 million, "reserve" is ~$32 million while hackerd amount is in range of $18 to $27 million. Small amount my ass.

Am I the only one who can no longer see the reserves now?

https://coinmarketcap.com/exchanges/coinex/

Since this is "Reported directly by the exchange" as mentioned on CMC, I would imagine that the only reason the data is not showing is because CoinEX no longer wants it to show... and if that's the case, that's even more worrying.

[Rikafip]

Am I the only one who can no longer see the reserves now?

I see the amount but nothing else other than that. Was there more info yesterday, like how much of each assets they have etc? Somehow I can't remmember whether it was there last night when I checked their CMC profile.

Since this is "Reported directly by the exchange" as mentioned on CMC, I would imagine that the only reason the data is not showing is because CoinEX no longer wants it to show... and if that's the case, that's even more worrying.

Yep, if they really changed something here then it probably means that situation is far more serious than they want their users to believe.

edit: I found archived snapshot from June 20th (the latest one) and there you could see the details. What's interesting though is that just a few months ago they allegedly had $182 million in their reserve and now it fell down to barely over $20 million.

https://web.archive.org/web/20230620035753/https://coinmarketcap.com/exchanges/coinex/